The Nigerian Naira maintained a steady path against the United States Dollar at the start of the new trading week, as activities in the Nigerian Foreign Exchange Market (NFEM) and the parallel market reflect the ongoing impact of recent Central Bank of Nigeria (CBN) policy shifts.
Official Market Performance (NFEM)
In the official window, the Naira opened the day with a slight adjustment, trading at approximately ₦1,356.74 per Dollar. This follows a period of moderate volatility observed in mid-March, where the rate fluctuated between ₦1,344 and ₦1,370. Data from the NFEM shows that while the intraday high reached ₦1,362.00 in recent sessions, the closing averages remain anchored near the ₦1,355 mark.
Market analysts attribute this relative stability to the CBN’s refined Electronic Foreign Exchange Matching System (EFEMS), which has enhanced price discovery and reduced the speculative spikes common in previous years.
Parallel Market Trends
In the informal or “black market,” the Naira continues to trade at a premium, though the gap between official and parallel rates remains narrower than historical highs. As of the morning of March 23, 2026, street traders in Lagos and Abuja are quoting the Dollar between ₦1,410 and ₦1,430, depending on the volume of the transaction.
The reintegration of licensed Bureau De Change (BDC) operators into the official framework—a move finalized in February 2026—has significantly increased retail liquidity. This structural shift has successfully diverted much of the small-scale demand for school fees and travel allowances away from the unregulated market, providing a cushion for the local currency.
Economic Context and Outlook
The broader economic landscape provides a supportive backdrop for the Naira this quarter. Nigeria’s external reserves have shown resilience, recently hovering around the $50 billion mark, bolstered by steady oil production levels of 1.46 million barrels per day and favorable global crude prices.
Furthermore, the Monetary Policy Committee (MPC) recently signaled a cautious stance, maintaining high interest rates to combat inflation, which cooled slightly to 15.10% earlier this year. Investors remain optimistic as 30 major banks met the CBN’s new capital requirements ahead of the March 31 deadline, signaling a more robust financial sector capable of supporting foreign exchange stability.
SOURCE: OsunDefender